Move fails to resolve pensions-row deadlock

THE public sector pensions dispute remained deadlocked last night despite a move by the government to improve arrangements for more than half a million NHS workers.

Health Secretary Andrew Lansley said that 530,000 staff will not need to pay any more into their pensions next year because the threshold for freezing pension contributions will be raised from £15,000 to £26,557 for 2012-13.

The change will protect lower-paid staff in the health service, with increased contributions distributed among higher earners, said the government.

Mr Lanseley said: “Public service pensions will remain among the very best available, providing a guaranteed pension level for all employees very few private sector employers offer this.”

Unions accused ministers of trying to “mislead” workers and criticised the timing of the announcement ahead of fresh negotiations which were held yesterday.

Unison’s head of health, Christina McAnea, said: “The proposed increase in pension contributions will still hit more than half of all NHS staff who are already struggling to cope with the pay freeze and rising inflation.”

The announcement followed last week’s strike by up to two million public sector workers, which closed schools, courts and job centres and disrupted hospitals and driving tests.